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City Care benefits from this ownership by having ready access to
additional equity if required to support our business plans, and
through group procurement and banking initiatives that lower
the cost to us of some products and services, including bank
borrowing. City Care's clients benefit from the knowledge that
City Care forms one part of a strong financial group.
An independent board of directors, who are appointed by CCHL
after a rigorous needs assessment and selection process,
governs City Care.
Due to its local government ownership, City Care is bound
not just to normal company legislation, but also the additional
requirements for accountability as defined in the Local
Government Act 2002. Part of this accountability is to publish
this annual report.
A second requirement is the annual agreement of a Statement of
Intent between City Care and CCHL, which covers such issues
as the scope of operations and objectives for the company,
the performance measures and targets, and a number of key
governance and policy positions. The following Objectives and
Governance statements have been extracted from the current
Statement of Intent.
Objectives
The principal objective of the company shall be to operate a
profitable, sustainable and innovative business so as to maintain
a strong market presence in all areas of construction and
maintenance of the infrastructure and amenity assets owned
by the CCC.
In defining operations and markets to be involved in, the
company will ensure:
· It will continue to compete in Christchurch markets and
aggressively target a significant share of work offered for
tender by CCC in the sectors in which City Care operates.
· It will maximise the success of its business in terms of
sustainable market share, by focusing on profitable growth
into new markets and new market areas throughout New
Zealand and by diversifying its client and activity base.
The general objectives of the company are to adopt responsible
social, environmental and value adding approaches to all
aspects of the business. This includes but is not limited to:
· Operating the business in a way that generates appropriate
financial returns and dividend streams to the shareholder.
· Being a good employer in providing a work environment
that recruits, fosters and retains competent, motivated,
committed and productive employees.
· Being committed to excellence in health and safety
management.
· Being a good corporate citizen in the community meeting
our social obligations.
· Acting in an environmentally responsible manner and
progressively implementing environmentally sustainable
practices to its method of operation.
· Ensuring business activities comply with all legal
requirements.
· Ensuring good contract results relative to contract
specification.
Governance Statements
Role of the Board
The Board is responsible for the proper direction and control of the
company's activities. This responsibility includes such areas as:
· Providing strategic direction and creating shareholder value
through the approval of company strategies and policies
with particular regard to the company's objectives.
· Review of company performance against strategic, financial
and other targets.
OWNERSHIP & GOVERNANCE
City Care's sole shareholder is Christchurch City Holdings Limited (CCHL), which is itself owned by
the Christchurch City Council (CCC). CCHL is a substantial company in New Zealand terms. It holds
majority shareholdings in lines company Orion, Christchurch International Airport and the Lyttelton
Port Company, and has a Standard and Poors credit rating of AA+.
